FAC Explorer

Finding 43624 (2022-003)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 47115
Organization: Jacobson Memorial Hospital Care Center and Subsidiary (ND)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Hospital lacks a proper internal control system for preparing the consolidated schedule of expenditures of federal awards.
  • Impacted Requirements: Financial reporting criteria require accurate preparation of the Schedule and its notes, which the Hospital currently cannot meet independently.
  • Recommended Follow-Up: Management should enhance awareness of financial reporting requirements and improve internal controls related to the Schedule preparation.

Finding Text

2022-003 Department of Agriculture Federal Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Department of Health and Human Services Federal Assistance Listing #93.697 COVID-19 Testing and Mitigation for Rural Health Clinics Department of Health and Human Services Federal Assistance Listing #93.461 Rural Health Research Centers Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control Over Compliance - Other Criteria - Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition - The Hospital does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. We were requested to draft the Schedule. Cause - Auditor assistance with preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required with the Hospital meets a specified threshold of federal expenditures. Effect - There is a reasonable possibility that the Hospital would not be able to draft a Schedule that is correct without assistance of the auditors. Questioned Costs - None reported. Context - Sampling was not used. Repeat Finding from Prior Years ? Yes Recommendation - While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Hospital?s schedule of expenditures of federal awards and internal controls that impact financial reporting. Views of Responsible Officials - Management agrees with the finding.

Corrective Action Plan

Finding 2022-003 Federal Agency Name: Department of Agriculture Program Name: Community Facilities Loans and Grants Federal Assistance Listing #10.766 Finding Summary: Eide Bailly assisted in the preparation of our draft schedule of expenditures and federal awards and accompanying notes to the consolidated schedule of expenditures and federal awards. Responsible Individuals: Scott Brooks, CEO and Micaela Meyer, CFO Corrective Action Plan: It is not cost effective to have an internal control system designed to provide for a complete and accurate schedule of expenditures and federal awards. We requested that our auditors, Eide Bailly LLP, assist in the preparation of the schedule of expenditures. We have designated a member of management to review the drafted schedule of expenditures. Anticipated Completion Date: Ongoing

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 43625 2022-003
    Significant Deficiency Repeat
  • 43626 2022-004
    Significant Deficiency
  • 43627 2022-003
    Significant Deficiency Repeat
  • 43628 2022-004
    Significant Deficiency
  • 43629 2022-003
    Significant Deficiency Repeat
  • 43630 2022-003
    Significant Deficiency Repeat
  • 43631 2022-004
    Significant Deficiency
  • 620066 2022-003
    Significant Deficiency Repeat
  • 620067 2022-003
    Significant Deficiency Repeat
  • 620068 2022-004
    Significant Deficiency
  • 620069 2022-003
    Significant Deficiency Repeat
  • 620070 2022-004
    Significant Deficiency
  • 620071 2022-003
    Significant Deficiency Repeat
  • 620072 2022-003
    Significant Deficiency Repeat
  • 620073 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $668,156
93.697 Covid-19 Testing for Rural Health Clinics $363,868
93.155 Rural Health Research Centers $130,641
93.461 Covid-19 Testing for the Uninsured $21,368
93.301 Small Rural Hospital Improvement Grant Program $10,513